Sony, Hitachi and Toshiba Create Japan Display

In a time when displays don't seem to be doing too well as far as sales are concerned, three companies native of Japan decided to pool their resources and start a joint venture.

Then again, it would be more accurate to say that four companies contributed to the venture, especially since government-funded firm Innovation Network Corporation of Japan (INCJ) is providing most of the money.

INCJ will invest the most in this new firm called Japan Display Inc., ending up with 70% stake in exchange for $2.6 billion (1.9 billion Euro).

That leaves Toshiba, Hitachi and Sony with a 10% share each, the stakes originating from their respective small and medium-sized display subsidiaries.

Japan Display will utilize high value-added technologies and will set up new production lines with the funds from INCJ.

Cost competitiveness is one of the primary goals of the new company, or will be once it goes online next year.

To be more precise, Japan Display will enter business at the beginning of Spring, 2012, which would be the month March.

That's almost exactly one year after the natural disaster that hit Japan hard (the earthquake and tsunamis from March 11).

So far, a high chance was found for 2011 to show a decrease in LCD TV sales for the first time ever.

This is one of the factors that played into the prediction that LCD TVs will sell better next year, by about 10%.

Basically, even with a wider variety of panel sizes and large models, demand has waned, both because of the aforementioned natural disaster as well as the interest of consumers being captured by other inventions.

Japan Display will be based in Tokyo, Japan (obviously) and will perform design, development and production of small and medium-sized display devices and related products.